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Naira continues to nosedive despite CBN’s $51.8m intervention; exchanges for N440/$

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CBN resumed dollar to BDC

Four days after the Central Bank of Nigeria (CBN) had resumed partial sales of dollar to Bureau De Change (BDC) operators in the country, the local currency, naira, continues to trade on the low side as it exchanged for N440 to a dollar in the parallel market on Thursday.

The naira had last week dropped from N480/$ to N420/$, following CBN’s announcement to resume forex sales to the BDCs.

Market observers noted that the appreciation recorded by naira was due to release of hoarded forex by market speculators in the anticipation that once the apex bank resumes dollar sales to the BDCs, they will be in trouble.

The CBN, in a circular last week, stated that the partial sales of dollar to the BDCs is part of efforts to enhance accessibility to foreign exchange particularly to travellers following the announcement of limited resumption of international flights by the Honourable Minister of Aviation, commencing with Abuja and Lagos.

“The Central Bank of Nigeria wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from September 07, 2020.

“Consequently, purchase of foreign exchange by BDCs shall be on Mondays and Wednesdays in the first instance.

“The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays accordingly,” it said in the circular.

Meanwhile, Isaac Okoroafor, the director, corporate communications department at the CBN, had earlier, assured that those requiring foreign exchange for purposes of travel, educational fees and other invisibles could obtain such over the counter from their respective banks.

On Monday’s forex sales resumption, about 5,180 BDCs got $10,000 each, making a total of $51.8m.

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